DayTrading as a side hustle could be a lucrative way to make extra cash. While a lot of day traders spend hours on computer trading during trading hours, you could start spending about 30 minutes to an hr everyday trading.
Day Trading As A Side Hustle
What Is Day Trading?
A day trader is an individual who buys and sells securities—such as stocks, options, futures, or foreign currencies—within the same trading day. A day trader often closes out all positions at the end of each trading day and begins anew the next trading day.
There are two types of day traders:
1. Retail day traders:
Retail day traders are individuals who trade for their own personal gain. They are not affiliated with a particular financial institution or broker-dealer and often use online trading platforms to execute their trades.
2. Professional day traders:
Professional day traders are individuals who trade for the institutions they are affiliated with, such as banks, hedge funds, or prop trading firms. Professional day traders generally have more capital to trade with and access to more information and resources than retail day traders.
How To Become A Day Trader?
Becoming a day trader is not an easy task. It requires a lot of dedication, hard work and most importantly, knowledge about the market. Day trading is not a get rich quick scheme and it takes years of experience and practice to become a successful day trader.
Learn How Market Operates: You need to have a basic understanding of how the stock market works and how to trade stocks. There are many books and online resources that can help you learn about the stock market.
Open Brokerage Account: You need to open a brokerage account. A brokerage account is an account with a broker that allows you to buy and sell stocks.
The next step is to find a day trading system that you are comfortable with. There are many different day trading systems available and it is important that you find one that you are comfortable with. You can find many different day trading systems online.
The last step to becoming a day trader is to practice. You need to practice your day.
Books Recommended For Learning Day Trading
Interactive Day Trading: Ultimate Trading Guide: This book is an easy-to-read book for anyone wanting to learn day trading from the basics. It includes a video course as well.
Chart Patterns: Trading-Desk Booklet : This is a book that has all the popular chart patters that could help you make a better prediction when trading.
How much does the average day trader make a day?
There is not really an exact answer, because it depends on the individual trader’s level of experience, skills, and luck. Some day traders may make only a few dollars a day, while others may make thousands, but most day traders who start day trading without any experience lose money.
Can you day trade as a hobby?
Yes you can but you need to actually make money or you are just going to lose money and stress yourself out. DayTrading is not usually a hobby, you could paper trade with fake money but no day trader just trades for the fun of it because it’s very risky.